Arkansas § 23-47-207 Payment of overdrafts - Liability of officer or employee

Arkansas Statutes

§ 23-47-207 — Payment of overdrafts - Liability of officer or employee

Arkansas § 23-47-207

Title23

This text of Arkansas § 23-47-207 (Payment of overdrafts - Liability of officer or employee) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 23-47-207 (2026).

Text

(a)Any officer or employee who knowingly pays out the funds of any state bank upon the check, order, or draft of any individual, firm, corporation, or association which does not have on deposit with the bank a sum equal to the check, order, or draft is personally liable to it for the amount so paid unless the drawer of the check, order, or draft has previously arranged with the bank for a line of credit sufficient to cover the payment or unless the payment was made pursuant to a general authorization approved by the board of directors for the officer or employee to cover the payment.

(b)However, the board of directors may ratify the overdraft and relieve the employee from liability.

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(a) Any officer or employee who knowingly pays out the funds of any state bank upon the check, order, or draft of any individual, firm, corporation, or association which does not have on deposit with the bank a sum equal to the check, order, or draft is personally liable to it for the amount so paid unless the drawer of the check, order, or draft has previously arranged with the bank for a line of credit sufficient to cover the payment or unless the payment was made pursuant to a general authorization approved by the board of directors for the officer or employee to cover the payment. (b) However, the board of directors may ratify the overdraft and relieve the employee from liability.